Procurement Act 2023 – Two Months After Implementation

Starting with the bill receiving royal assent in October 2023, we published a series of articles sharing our thoughts on the changes ushered in by the Procurement Act. Replacing the Public Contracts Regulations 2015, the Act introduced the widest changes to public sector bidding in a generation, ensuring a smooth transition into the new regime – including the new supplier debarment list, requirement to set and publish KPIs for eligible contracts and the introduction of dynamic markets.

Analysing the Procurement Act in detail allowed us to proactively adjust our processes in advance of the implementation date, ensuring we extend accurate, high-quality bid management support to our clients, including hundreds of SMEs each year.

As such, we reflect on some of the changes observed two months after the Act went live, and how we will continue to support clients to produce high-quality, winning tender submissions.

The Central Digital Platform (CDP)

The central government’s Commercial Function introduced the Central Digital Platform (CDP) on 24 February, integrated as part of the Find a Tender platform. The CDP is a mandatory requirement for all bidder organisations, and, if you have not registered, your submission will be disqualified or rejected.

Example excerpt from recent tender pack

The CDP takes no more than 15–20 minutes to complete, and comprises the following:

• Persons of significant control and other company registration information
• Last two years of accounts demonstrating economic and financial standing, audited if required by law (e.g. turnover exceeding £15 million)
• Industry accreditations and certifications, such as NICEIC/CQC registration or ISO 9001 certification.

As part of our initial pre-bid qualification and checks, we have flagged this requirement to dozens of clients, all of whom managed to register successfully and provide the PDF or share code to submit a compliant tender.

Adjusting to the Procurement Specific Questionnaire (PSQ)

Closely linked with the CDP, the central government also issued a new pre-qualification document known as the Procurement Specific Questionnaire (PSQ).

In lockstep with wider aims to simplify and streamline public procurement, the PSQ is a slimmed down version of previous pre-qualification documents, including the Selection Questionnaire (SQ) and PQQ many bidders are accustomed to. The PSQ comprises three core sections:

• Part 1: confirmation of core supplier information – outlining basic company information and data responses about your organisation, such as date of registration, connected persons and economic and financial standing.
• Part 2: additional exclusions information – requiring bidders to list ‘associated persons/organisations’ and confirm they do not meet the additional thresholds for exclusion from participation.
• Part 3: conditions of participation – providing confirmation that bidders meet the authority’s conditions of participation for financial, insurance and technical and professional ability. Part 3B gives scope for authorities to add short, procurement-specific narrative responses which may be pass/fail or scored to ensure progression to Stage 2 of the procedure.

However, as per our initial analysis, guidance for use of the PSQ is advisory only, rather than the statutory obligation which supported the SQ within the Public Contracts Regulations 2015. As such, whilst we have seen the PSQ being used with increased frequency, other authorities are still utilising the SQ and even the PQQ as part of the tender process.

Greater planning and pipeline tender notices

In concert with guidance within the Procurement Act, Sections 15–18 outline increased pre-bid activity for contracting authorities, including:

• ‘Planned procurement notices’ between 40 working days and 12 months prior to the tender going live
• Market engagements with suppliers to develop and refine the tender procedure, identify priority areas and build capacity amongst suppliers
• A duty to consider lots within a tender if the goods, services or works being supplied could reasonably be delivered under more than one contract.

Although it is not a mandatory requirement for all tenders, contracting authorities have embraced the new planning and pipeline notices over the past two months. Since 24 February, more than 1,500 pre-bid pipeline and planning notices have been published across all industries and sectors, including health and social care, construction, facilities management and professional services.

Lastly, the government Commercial Function published UK1 this April, which further formalises pipeline notices in public sector bids. Within UK1, large contracting authorities with a spend above £100 million per annum are required to publish pipeline notices for each tender opportunity exceeding £2 million value within the next 18 months. The requirement will further strengthen aims to formalise bid pipelines, encourage prospective suppliers to bid for public sector work and adhere to procurement timescales.

Fluctuations in contract notices

During the month of February, central and sub-central authorities issued a flurry of contract notices, with data produced by Tussell demonstrating the volume of notices increased by 50% from February 2024.

Understandably, this dropped to below normal levels following 24 February, as contracting authorities and bidders alike adjusted to the new regulations. 430 tender notices were published the first month of the regime – however, only 45% of these had a contract value of more than £250,000.

Although there are normal fluctuations through the year, such a sharp decrease suggests buyers are backloading more valuable contracts and framework agreements once the ‘dust has settled’ regarding the Procurement Act’s changes.

Bid and tender support

As part of our industry position as thought leaders, we will continue to monitor changes to the wider bid and tender industry, including new PPNs and strategic changes such as the National Policy Procurement Statement.

To find out more about the bid and tender services and bid writing training we provide, contact us today at info@executivecompass.co.uk or 0800 612 5563.